DAX exceeds 24,000 points for the first time
The DAX has increased over 24,000 points for the first time. The German leading index temporarily climbed to 24,006 points at the beginning of the trade. He has grown by around 20 percent since the beginning of the year and his Burglary from April more than balanced. The background is, among other things, hope for a solution to the customs conflict.
The DAX had already reached a record high on Monday. He benefited from the fact that the first excitement in New York because of a Gradation of the US credit rating by the agency Moody’s quickly put. On Tuesday, vague hopes for a possible ceasefire in Ukraine were added. US President Donald Trump had after a phone call With the Russian President Vladimir Putin, the prospect of immediate negotiations. But there is also skepticism among analysts.
Hinth of relaxation
From the perspective of analysts, the latest stock market upturn is based on a mixture of declining geopolitical tensions – especially in the customs context – solid quarterly reports and a touch of relaxation in the inflation data. In addition, there are still stable signals from the economic side. In Germany, the planned state investment package also ensures confidence among stock marketers. A debt -financed pot of up to 500 billion euros is to be provided for infrastructure and climate protection.
The Commercial conflict between the USA and Chinathe two largest economies in the world, had burdened the financial markets for weeks. The concern of a global recession was great. However, experts warned of premature optimism. Because it is still open whether the trade between the USA and China is normalized.
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Shares in Europe run better than in the USA
The rally on the stock exchanges is in a strong contrast to the economic crisis in Germany. However, the views of the investors often do not focus on the current situation, but on future profits. In addition, the 40 corporations managed in the DAX are internationally established and make most of their sales abroad.
In Europe, shares have increased significantly more since the beginning of the year than in the USA – thanks to many good corporate numbers, the further stock -friendly interest rate policy of the European Central Bank (ECB) and the low ratings compared to US shares.
The stock exchange is also powered by the expectation to falling interest rates in the euro zone, with which the ECB wants to boost the weak economy. Inflation worries have recently decreased, many economists expect lower key interest rates in the coming months.
For stock investors, prospects for falling interest rates are good news. Shares then become more attractive compared to fixed -income papers. Loans are getting cheaper, so companies can finance themselves more easily and house builders are cheaper to loan. Overall, investments are becoming more affordable, which supports the economy.
